Running a company in Silicon Valley? I hope you're not planning to move out. Maybe you can call the shots as an employer in the current economy, but don't forget what made the Valley such a great place to work - extremely low switching costs on the part of the employee and a wealth of sharable knowledge and access. A good engineer does not a good manager make, and managers often forget that when an engineer finds him/herself doing less of what made them tick, the wealth of other engineering companies in the Valley provided a chance to change jobs, sparking a slew of positive effects. Just remember, it works both ways.